Dual-Speed Dilemma: China's Economic Strain on Workers

Zhang Jinming, an employee at a Chinese state firm, moonlights as a food delivery driver to offset a salary reduction. China's dual-speed economic model is impacting workers, with falling profits and delayed payments exacerbating stress. Economists urge shifting focus to domestic sectors to avert further slowdown.

Zhang Jinming, a state firm employee in China, supplements his income by delivering food after a 24% salary cut. Like many, he's pressured by economic strain as China's export-focused growth model struggles with sustaining demand.

The Chinese economy faces challenges with increased contract and payment delays despite a 5.2% growth rate amid U.S. tariffs. Profound competition affects industrial profits, pushing companies to cut costs and impacting workers adversely as wages drop.

Economists advocate a structural shift towards domestic consumption to counter the lopsided growth. As arrears in key sectors rise, Beijing confronts its commitment to elevate household spending, amid apprehensions of impending deflation.

(With inputs from agencies.)